Would Like To Flip Contract For $15k...

Hello,

I have a house under contract in Kendall and was wondering if flipping the contract for $15k was too much. Thanks, Tim

Comments(3)

  • rajwarrior17th November, 2003

    That depends greatly on the numbers in the deal. Trying to get $15K on a ARV property of $100K with a purchase of $80K wouldn't work. But $15K on a $200K property for $125K might.

    Roger

  • davehays17th November, 2003

    To answer this question, you need to know the following:

    * For THAT neighborhood, what do houses comp at? This can help you determine ARV=after repair value, assuming it is a fixer
    * How much work needs to be done? $10k? $30k? Be LIBERAL in your estimate, high ball it
    * What is standard closing fees, and realtor fees in your area?

    Add all these costs up, and subtract from the ARV. That will equal profit, less holding costs, such as interest only payments on a hard money loan.

    Once you see this profit pool, you will know if $15k is too much, it usually is.

  • HasSpoken17th November, 2003

    Sorry folks here are the details:

    FMV: $295K
    PAYOFF: $186K
    Repairs: less than $1K

    tHANKS, Tim

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